An employer ceases or exits from the Local Government Pension Scheme (LGPS) if:

  • they have no active members left and the fund determines that they'll no longer be able to admit any new members to the fund or
  • as the result of the completion or termination of the contract with the outsourcing employer.

At the cessation or exit date, the actuary prepares a report of the funding position and determines the value of any deficit or surplus. We'll consider each case individually and conclude the amount of deficit which must be paid, or in the case of a surplus, the amount to be paid.

Where a risk sharing arrangement is in place, the details of the agreement will be considered by the fund.